CBRT holds rate at 37%

Turkey’s central bank left its main interest rate at 37% on April 22, extending a pause in rate cuts as it warned the Iran war could push inflation higher. (reuters.com) The Central Bank of the Republic of Türkiye also kept its overnight lending rate at 40% and its overnight borrowing rate at 35.5%. Analysts in Reuters and Bloomberg surveys had largely expected no change at this meeting. (reuters.com) (bloomberg.com) Officials said they were watching the effect of higher energy prices and geopolitical risks on the disinflation path, after war-related shocks in the region disrupted market assumptions that cuts would continue through spring. March was the first hold, and April was the second straight meeting without a move. (reuters.com) (bloomberg.com) Interest rates are the price of money: when a central bank keeps them high, bank loans, bond yields, and venture funding usually stay expensive. In Turkey, that means startups that need fresh cash face a harder market than companies that already earn foreign currency from exports or overseas customers. (state.gov) (invest.gov.tr) Turkey had been cutting rates steadily before the pause. The policy rate fell from 45% in January 2025 to 42.5% in March 2025, and by early 2026 it had reached 37%, before the bank stopped to reassess inflation risks. (reuters.com) (rte.ie) (duvarenglish.com) Inflation is still running far above the bank’s long-term 5% target. Turkey’s official statistics agency showed annual consumer inflation at 30.87% in March 2026, after 30.65% in January, even before April’s added pressure from energy costs. (tuik.gov.tr) (veriportali.tuik.gov.tr) Market economists have pushed back their expectations for relief. Reuters reported a median forecast for the policy rate of 32.75% by the end of 2026, while ING said cuts may not resume for several more months if energy prices stay elevated. (reuters.com) (think.ing.com) For Turkish founders, that leaves the same equation in place after April’s meeting: borrowing stays costly, domestic demand stays under pressure, and revenue that arrives in dollars or euros looks more valuable than ever. (state.gov) (reuters.com)